June 30, 2021
Company name:
Representative:

ES-CON JAPAN Ltd.
Takatoshi Ito, President &Representative Director(TSE 1st Section, code: 8892)
Minoru Nakanishi, Senior
Managing Director+81-3-6230-9308

Inquiries:
Tel:

Notice on Revision of Consolidated Earnings Forecast for the First Two Quarters ofFiscal Year Ending December 2021
ES-CON JAPAN Ltd. (ES-CON JAPAN) announces that a decision was made at the board of directors’
meeting held today to, given recent operating performance, revise the consolidated earnings forecast
for the first two quarters of the fiscal year ending December 2021, which was announced on February
24, 2021, as follows.
1. Revision of Consolidated Earnings Forecast for the First Two Quarters of the Fiscal YearEnding December 2021
Profit attributableto owners ofparent

Net sales

Operatingincome

Ordinary
income(million yen)(million yen)(million yen)(million yen)

(yen)

29,400

3,900

3,300

2,100

25.82

24,960

2,360

1,750

1,480

18.20

Change (B – A)

(4,440)(1,540)(1,550)(620)(7.62)

Percent change (%)
Reference:Previous first twoquarters of fiscal year
ended December 2020

(15.1)(39.5)(47.0)(29.5)(29.5)

54,968

10,595

10,0706,990

102.14Previously announced
forecast (A)Revised forecast (B)Profit pershare

2. Reason for Revision of Consolidated Earnings Forecast
Real estate sales business・ The primary factor for the reduction in net sales is the delay of delivery date ofcondominiums/houses to the second half of the fiscal year, amounting to approximately 3.0 billion
yen. However, progress has been made as forecast on a contract basis.
Real estate leasing business・ Reduction in rental income due to delays in leasing of retail facilities during the COVID-19
pandemic caused by the extension of the state of emergency, etc.
・ Reduction in income due to prior investment in repairs, etc. for improving customer-gathering
potential of retail facilities
Real estate planning agency and consulting business・ Reduction in net sales of 0.6 billion yen due to delay in sales in the columbarium (permanent userights) sales business of Ryomon Co., Ltd.

- 1 -・ Reduction in income due to prior expenditure of advertising expenses for commercials, etc. topromote sales in the columbarium (permanent use rights) sales business
Due to these primary factors listed above, the initial forecast was revised with a 4.44 billion yen
decrease in net sales and a 1.54 billion yen decrease in operating income.
Because most of these factors are delays to the second half of the fiscal year and involve priorinvestment that will lead to improvement of income in the second half onwards and is believed to be
recoverable in the second half, there is no change to the current full-year consolidated earnings
forecast for the fiscal year ending December 2021 and dividend forecast (dividend per share: 38 yen).
The key strategies for the second half of the fiscal year are as follows.
(1) Real estate sales business
ES-CON JAPAN will steadily move the contracts which have accumulated in the first half of thefiscal year to the delivery phase and carefully communicate the features and positive aspects ofeach property in order to provide services that apprehend customer needs in an effort to promotesales.
As for the current state of sales, there are 844 contracted units (as of June 28, 2021) which is
79% of the 1,062 units forecast at the beginning of the period (full-year forecast for the fiscal year
ending December 2021).
(2) Real estate leasing businessAs vaccination is accelerating alongside the lifting of the state of emergency, ES-CON JAPAN will
endeavor to improve added value of retail facilities and enhance leasing.
(3) Real estate planning agency and consulting businessWith advertising such as commercials for the columbarium starting to show results, ES-CON
JAPAN will accelerate sales alongside the coming increase in visitors resulting from the lifting of
the state of emergency, etc.

* The earnings outlook and other forward-looking statements contained in this document are based on
information currently available to ES-CON JAPAN. Accordingly, actual business performance and other results
may differ materially due various factors- 2 -